Mack Real Estate Lands $63M for Phoenix Industrial Project
Mack Real Estate Group will soon break ground on the first phase of its 124-acre Mack Innovation Park Scottsdale in metro Phoenix, according to Phoenix Business Journal. The developer obtained nearly $63 million in construction financing.
Bank OZK originated $43 million in first mortgage debt and PGIM Real Estate provided $19.8 million in mezzanine financing to Mack affiliates. The JLL Capital Markets team of Chris Peck, Brad Miner, Jason Carlos, Tyler Peck and Jarrod Howard arranged the deal.
READ ALSO: Top 5 Industrial Properties Under Construction in Phoenix
The two-building, 305,400-square-foot first phase will rise on an infill Scottsdale, Ariz., site that has the capacity for an overall 1.2 million square feet across 11 buildings, with good access to Pima and Bell roads and the Loop 101 freeway. Mack acquired the property in 2022 for $125 million, in an Arizona State Land Department auction.
The initial two facilities are set to feature 32-foot clear heights, 53 dock-high doors, 20 grade-level doors and 516 parking stalls. Completion is expected by late 2025.
The project team for Mack Innovation Park Scottsdale includes Willmeng as general contractor, Butler Design Group as architect and Withey Morris Baugh PLC as land use counsel. Leasing agents are Mitch Stravitz and Rusty Kennedy of CBRE, James Cohn of Stream and Randy Shell of Shell Commercial.
Desert heat
It was just last month that Mack won at auction the rights to develop more than 2,300 acres of land in Phoenix’s North Valley and adjacent to the Taiwan Semiconductor Manufacturing Corp.’s campus. McCourt Partners is an investor in a development joint venture with Mack. Long term, this project could include industrial, retail and office space, along with up to almost 9,000 residential units.
That’s in addition to the 3 million-square-foot Mack Innovation Park Deer Valley underway about 20 miles from downtown Phoenix.
The metro Phoenix industrial space market saw vacancy in the first quarter tick up by 510 basis points year-over-year to 8.1 percent, according to a first-quarter report from Colliers. Net absorption was 4.4 million square feet, versus 9.7 million square feet delivered in the quarter, with a further 33 million square feet underway.
Amazon accounted for all of the three largest leases in the first quarter, two in Glendale and one in Goodyear, totaling more than 3.4 million square feet, also per Colliers.
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